HOUSTON – Hyperdynamics subsidiary SCS and partner South Atlantic Petroleum (SAPETRO) have received notice of a Presidential Decree signed by the president of the Republic of Guinea.
This implements the Third Amendment to an offshore production-sharing contract that the partners signed on April 12 with representatives of the government.
SAPETRO’s 50% participating interest in the concession is now confirmed, as is the two companies’ rights to explore for oil and gas on the 5,000-sq km (1,930-sq mi) block.
The contract terms requires drilling on an initial exploratory well to start no later than May 30, while further wells may be drilled within the exploration period at the companies’ discretion.
A $5-million security instrument to be put in place by the partners will be released once the drilling rig for the plannedoffshore Fatala well enters Guinea territorial waters.
In addition, the parties have agreed that SCS’ “sufficient financing for the obligation well costs” will be $15 million in “cash and committed financing.” on top of costs already incurred.